The Impact of State-Investor Contracts on Development
Agreements between the government of a country and a foreign business investor, often supported with a Bilateral Investment Treaty
Abstract
A State-Investor Contract is an agreement between the government of a country and a foreign business investor, often, but not always supported with a Bilateral Investment Treaty (BIT), which is an agreement between two States. While rules governing trade, competition and investment are becoming global norms, health and environmental protection, social and labour rights, are mainly issues of international negotiation and domestic regulation, limiting the tools for protecting social and environmental interest. In order to attract foreign investors, governments promise favourable treatment of the investors with investment contracts or concession agreements that include stabilisation clauses, freezing clauses, economic equilibrium clauses and taxation provisions, among others.
K4D helpdesk reports provide summaries of current research, evidence and lessons learned. This report was commissioned by the UK Department for International Development.
Citation
Quak, E. (2018). State-Investor Contracts and Development. K4D Helpdesk Report 397. Brighton, UK: Institute of Development Studies.
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